How to make the Connecticut PTET election.

Connecticut’s Pass-Through Entity Tax lets your business pay state income tax for its owners and deduct it federally, outside the SALT cap. Here’s when and how to elect for 2026, and how to pay.

Can your business elect?

Partnerships and S corporations, including LLCs treated as either, that are required to file a Connecticut return under Conn. Gen. Stat. Section 12-726. Publicly traded partnerships that have agreed to file the annual unitholder report are excluded.

The election is made by the entity, and the statute has no member-level opt-out. Only the shares of members subject to Connecticut personal income tax (and pass-through members presumed to be owned by such persons) count toward modified Connecticut source income, so corporate members' shares are left out. A lower-tier entity subtracts its share of Connecticut-source income from an upper-tier entity, and members receive both their direct and indirect shares of the tax.

Rate: 6.99% of the tax base, set by Conn. Gen. Stat. Section 12-699(c).

Modified Connecticut source income (Connecticut-source income times the ownership share of members subject to Connecticut income tax) plus the resident portion of unsourced income (non-Connecticut income not taxed by another state, times resident members' ownership share). Guaranteed payments are included.

Available for 2026. Connecticut's pass-through entity tax was mandatory from 2018 through 2023; Public Act 23-204 made it elective for taxable years commencing on or after January 1, 2024, with no end date. New to PTET? See how the election works.

Deadlines

Step	Due for 2026
1st estimated payment	April 15, 2026
2nd estimated payment	June 15, 2026
3rd estimated payment	September 15, 2026
4th estimated payment	January 15, 2027
Election, return, and tax due	March 15, 2027
Extended return and election	September 15, 2027

These dates are for a calendar-year business. Pay at least two business days early, since state payment sites slow down on deadline days.

Electing, step by step

Deadline: Written notice is due by the due date of the 2026 return, or the extended due date if an extension was granted (March 15, 2027, or September 15, 2027 if extended). Once made, the election cannot be amended or revoked.

Start with 2025 Form CT-1065/CT-1120SI, from the Connecticut Department of Revenue Services.

Prepare Form CT-PET, Connecticut Pass-Through Entity Tax Return, for 2026 and file it electronically through myconneCT or the federal MeF program.
On Form CT-1065/CT-1120SI, Connecticut Composite Income Tax Return, check the Pass-Through Entity Tax box on page 1 (labeled 'Pass-Through Entity Tax Election, Optional'). The instructions say to check it if the entity has filed Form CT-PET.
File the CT-1065/CT-1120SI by its due date, March 15, 2027 (September 15, 2027 if extended). The checked box on the timely filed return is the written notice of the election.
Do not check the box unless the election is intended: it cannot be amended or revoked once made.

2025 Form CT-1065/CT-1120SI, page 1, showing the line used to make the Connecticut PTET election: Pass-Through Entity Tax Election, Optional.. — The election: “Pass-Through Entity Tax Election, Optional.”

Paying the tax, step by step

Required if the required annual payment (the lesser of 90% of current-year tax or 100% of prior-year tax) is $1,000 or more. Four installments of 25% are due April 15, June 15, and September 15, 2026, and January 15, 2027, on Form CT-PET ES, filed and paid electronically. Underpayments accrue interest at 1% per month, computed on Worksheet CT-2210PE.

What you need

An account with myconneCT for the business. Set it up before the first deadline.
A myconneCT username and password with access to the business's pass-through entity tax account.
The installment amount: 25% of the required annual payment.
The business bank account routing and account numbers, or a card.

Start at myconneCT, Connecticut's official site.

Log in to myconneCT.
On the Summary screen, find the business's pass-through entity tax account and select the Make a Payment link.
Choose the 2026 period and the payment (estimated payment, extension payment, or return payment), then enter the amount.
Pay by Direct Payment (DRS withdraws the funds from the business bank account) or by credit or debit card (a convenience fee applies).
Form CT-PET ES must be filed and paid electronically. Only an entity with a DRS waiver (Form DRS-EWVR) may mail the paper coupon with a check to the Commissioner of Revenue Services.

Filing the return: Form CT-PET, filed and paid electronically through myconneCT or MeF. Due March 15, 2027 for calendar year 2026; Form CT-PET EXT gives a six-month extension to file (not to pay), and Form CT-1127 is used to request more time to pay.

Keep the PE Tax separate from your personal estimates. The business pays the PE Tax from its own account under its own ID. Once it does, each owner's personal Connecticut estimates can usually drop by the credit they expect, so the same tax is not paid twice.

Claiming the credit

Members subject to Connecticut income tax receive a credit equal to 87.5% of their direct and indirect share of the tax paid, reported on Schedule CT K-1, Part 4. Individuals claim it on Schedule CT-PE and carry it to Form CT-1040 or Form CT-1040NR/PY. Any credit above the member's tax is refunded.

Good to know

The member credit is 87.5% of the PE Tax paid, so 12.5% of the entity-level tax is not returned to members as a credit.
Residents also get a credit for their share of a substantially similar pass-through entity tax paid to another state or the District of Columbia.
If an entity makes PE Tax estimated payments but does not elect, the payments are applied to its Form CT-1065/CT-1120SI composite income tax return.
Individuals subtract their PE Tax Credit along with withholding when testing the $1,000 threshold for estimated tax interest on Form CT-2210.
Paying your personal Connecticut estimates? See how to pay Connecticut estimated taxes.
Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Connecticut Department of Revenue Services's own publications and Conn. Gen. Stat. Section 12-699 (election, rate, credit) and Section 12-699a (estimated payments), Chapter 228z.

This guide is for general education and reflects rules as of October 2026. Tax law and agency websites change, and your situation may have details that change the answer. Please talk with your tax professional before acting on it.